NEW YORK – The California municipal market was mostly flat amid light to moderate secondary trading activity Tuesday.
“We’re pretty much just unchanged,” a trader in Los Angeles said. “It still feels firmer, but I’m not seeing any movement.”
The Treasury market showed some losses Tuesday. The benchmark 10-year note was quoted recently at 3.05% after opening at 2.99%. The 30-year bond was recently quoted at 4.08% after opening at 4.02%. The two-year note was recently quoted at 0.65% after opening at 0.58%.
The Municipal Market Data triple-A scale yielded 2.57% in 10 years and 3.67% in 20 years Tuesday, matching levels of 2.57% and 3.67% Monday. The scale yielded 3.97% in 30 years Tuesday, matching 3.97% Monday.
Tuesday’s triple-A muni scale in 10 years was at 84.3% of comparable Treasuries and 30-year munis were at 97.3%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 104.5% of the comparable London Interbank Offered Rate.
In the California new-issue market Tuesday, Morgan Stanley priced $129.2 million of second series revenue bonds for the San Francisco City and County Airport Commission in two series.
Bonds from the $122.1 million Series F mature in 2035 and 2040, yielding 5.00% priced at par and 5.05% with a 5% coupon, respectively. The bonds are callable at par in 2020.
Bonds from the $7.2 million Series G mature in 2040, yielding 5.05% with a 5% coupon. The bonds are callable at par in 2020.
The credit is rated A1 by Moody’s, A by Standard & Poor’s, and A-plus by Fitch.
In economic data released Tuesday, the consumer confidence index slumped to 50.4 in July from an upwardly revised 54.3 last month. The June index was originally reported as 52.9.
Economists polled by Thomson Reuters predicted the index would be 51.0.
Previous Session's Activity
The most actively traded security in the state yesterday was California 5s of 2032, which traded 58 times at a high of 101.323 and a low of 97.759.
